Best Online Loans of April 2024
Updated April 4, 2024 at 10:23 am
The best online loans are essentially just personal loans that can be applied for and funded without ever leaving your home. That’s because the entire application process takes place on a loan company’s website or mobile app, and because you can upload loan documentation and sign loan documents electronically for maximum convenience.
Still, you don’t have to sacrifice quality to work with online money lenders instead of a traditional bank. The best online loans come with competitive interest rates and loan terms, and they are offered by established lenders like Discover, LightStream, SoFi and more. Our picks for the best online loan lenders are laid out clearly below, along with the pros and cons of their loan offerings and information on finding the right loan for your needs.
Our Methodology Newsweek Vault’s loan experts evaluated multiple data points to help our readers make sense of their borrowing options across student loans and personal loans. To narrow down the best available offers, we weigh the product pros and cons across five core categories, including:
- Application process
- Eligibility requirements
- Interest rates
- Loan amounts (minimum and maximum)
- Repayment flexibility
Our Picks - Best Overall: Upstart
- Best for Flexible Repayment Terms: LightStream
- Best for Fast Funding: Upgrade
- Best for Large Loan Amounts: SoFi
- Best for Borrowers with Poor Credit Profiles: Avant
- Best for Secured Loans: Best Egg
- Best for Debt Consolidation: Happy Money
- Best for Excellent Credit: Discover
- Best for Fair Credit: LendingPoint
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Our Picks for the Best Online Loans
Best Overall
Upstart Personal Loan
on Credible’s website
Why We Chose It
Upstart looks at your credit score as well as your employment history and education level to get you approved. Loan amounts range from $1,000 to $50,000, repayment terms are for 36 or 60 months and interest rates range from 6.40% to 35.99% APR. Read our review of Upstart Personal Loans
Pros
- Get approved based on several factors
- Competitive interest rates for exceptional credit
- Check your rate with no credit impact
Cons
- Potential for high interest rates
- Only two repayment options
- Origination fees up to 12% can apply
Best for Flexible Repayment Terms
LightStream Personal Loan
on Credible’s website
Why We Chose It
LightStream offers lengthy repayment terms, which can last as long as 144 months for home improvement loans and loans for a handful of other purposes. Interest rates are currently at 7.49% to 25.49% for borrowers who elect autopay, and customers can access up to $100,000 in funding based on eligibility. Read our review of LightStream Personal Loans
Pros
- Enjoy competitive rates and flexible repayment terms
- Borrow $5,000 to $100,000
- No origination fees or hidden fees
Cons
- Good-to-excellent credit required
- Minimum of $5,000 may be too high for some
- Lowest rates require autopay
Best for Fast Funding
Upgrade Personal Loan
on Credible’s website
Why We Chose It
Upgrade can provide the cash you need online within a business day after loan verification. These loans are offered in amounts from $1,000 to $50,000, and repayment terms are from 24 to 84 months. Interest rates range from 8.49% to 35.99% APR. Read our Upgrade personal loans review.
Pros
- Fast funding available
- Flexible repayment options
- Check your rate with no impact on credit
Cons
- Origination fee of up to 9.99% applies
- Potential for high interest rates
- Collateral could be required based on creditworthiness
Best for Large Loan Amounts
SoFi Personal Loan
on Credible’s website
Why We Chose It
SoFi has large available loan amounts, which range from $5,000 all the way up to $100,000. These loans don’t come with origination fees, repayment terms last from 24 to 84 months and interest rates are from 8.99% to 25.81% APR with autopay. Read our SoFi personal loans review.
Pros
- Borrow up to $100,000
- Comes with unemployment protection
- No origination fees
Cons
- Requires good-to-excellent credit
- Minimum of $5,000 may be too high for some
- Lowest rates require autopay
Best for Borrowers with Poor Credit Profiles
Avant
Vault Verified
Why We Chose It
Avant’s personal loans are accessible to borrowers with fair credit scores—the minimum credit score requirement is only 580. Applicants can fill out and submit an online application in just a few minutes. Also, if approved, the company can deposit funds into your account the next business day. Read our Avant personal loans review.
Pros
- Option to prequalify
- Fast funding
- Flexible repayment terms
Cons
- Administration fee up to 9.99% of the loan amount
- Lower maximum loan amount than some competitors
- High maximum rate
Best for Secured Loans
Best Egg
Vault Verified
Why We Chose It
Best Egg is one of the few lenders that offers secured and unsecured personal loans. Applicants receive an average APR discount of 20% when they choose to secure the loan with a fixture in their home, according to the lender’s website. Plus, its minimum FICO score requirement of 560 is one of the lowest recommended credit scores. Read our Best Egg personal loans review.
Pros
- Offers unsecured and secured loans
- Borrow up to $50,000
- You can take out two Best Egg Loans at the same time.
Cons
- Four-year loans and up come with higher origination fees
- Maximum APR is 35.99%
- Not available in Iowa, Vermont or West Virginia.
Best for Debt Consolidation
Happy Money Personal Loan
on Credible’s website
Why We Chose It
Happy Money loans are geared will forward your loan funds directly to creditors you’re paying off. Loan amounts are from $5,000 to $40,000, interest rates fall between 11.72% and 17.99% APR and loans can be paid off over 24 to 60 months. Read our Happy Money personal loans review.
Pros
- Check your rate with no credit impact
- Comes with lower rates than credit cards
- Become debt-free in two to five years
Cons
- Higher starting rates than other lenders
- Origination fee applies
- Fewer potential loan amounts available
Best for Excellent Credit
Discover Personal Loans
on Credible’s website
Why We Chose It
Discover offers some of the best online loans for consumers with good-to-excellent credit since interest rates fall between 7.99% to 24.99%, and there are no origination fees or hidden fees to watch out for. Discover lets consumers borrow $2,500 to $40,000 as well, and loan terms are offered from 36 to 84 months. Read our Discover personal loans review.
Pros
- Highly competitive interest rates for good credit
- No origination fees
- Choose from flexible repayment options
Cons
- Minimum income of $25,000 required
- Best terms are for those with the best credit
- Lower loan limits than some competitors
Best for Fair Credit
LendingPoint
Vault Verified
Why We Chose It
LendingPoint offers personal loans to borrowers with fair credit scores as low as 660. This personal loan company can deposit funds into your account as fast as the next business day. That said, a potential downside is that you must earn at least $35,000 per year to qualify. Read our LendingPoint personal loans review.
Pros
- Check potential offers without hurting your credit
- Competitive starting APR
- Fast funding
Cons
- Not available in all states
- High maximum APR
- Must have an annual income of at least $35,000
What Is an Online Personal Loan?
Online loans are personal loans (also called installment loans) that let you borrow money and pay it back with fixed interest rates and fixed monthly payments. Available loan amounts can vary by quite a bit, but you can usually borrow anywhere from $1,000 to $100,000 depending on the lender. These loans also have a specific repayment term offered upfront, which can be from around 24 to 144 months depending on the lender, the loan purpose and personal eligibility.
Online loans are typically unsecured, meaning they don’t have collateral requirements like a home or a car. Secured personal loans do exist, although options are much more limited.
Loan Statistics
- The average personal loan rate on 24-month personal loans rose from 12.17% in Q3 2023 to 12.35% at the beginning of Q4, a 0.18% increase. (Federal Reserve Bank of New York)
- 22.7 million Americans had an outstanding personal loan balance at the end of Q2 2023, more than ever before. (Federal Reserve Bank of New York)
- Overall outstanding U.S. personal loan debt rose to $232 billion in 2023, up $40 billion from 2022. (Federal Reserve Bank of New York)
- Lenders have started favoring less-risky credit profiles. For new loans, those given to borrowers with subprime credit scores fell to 36% in Q2 2023, which is down from 39.5% one year before. (TransUnion)
- The number of unsecured personal loans rose from 22.2 million in Q2 2020 to 27.2 million in Q2 2023, a five million loan increase. (TransUnion)
How Do Online Personal Loans Work?
Online personal loans work like any other type of loan, except for the fact the entire application and approval process takes place virtually instead of over the phone or inside a bank or credit union. You can apply for an online loan on a desktop computer or mobile app, and many lenders make it possible to “check your rate” and get an idea of your loan terms and monthly payment before you move forward with a full loan application.
Funding for online personal loans takes place via bank transfer, so you need to have a bank account for the online lender to send money to. You can also sign all your loan documentation digitally for maximum convenience and speed.
How To Get an Online Personal Loan
Getting funding with an online loan is fairly simple and straightforward. Here are the steps you’ll want to take to apply and get funding.
- Compare lenders. Spend some time comparing lenders based on their available loan amounts, repayment terms, interest rates and other factors. Also look for potential loan fees, including origination fees.
- Get preapproved online. See if the lenders you’re considering give you the option to “check your rate” without a hard inquiry on your credit reports. If so, this is a great way to gauge your approval odds and see what kind of offer you can get ahead of time.
- Gather loan documentation. You’ll need to gather up some documentation before you apply for a loan, including your Social Security number (SSN), recent pay stubs, W2s, a copy of your driver’s license and utility bills to prove your address.
- Move forward with an application. Decide on the lender you want to apply with and begin the loan application. You’ll need to share information like your full name, address, date of birth, SSN, phone number, employment status, income and more.
- Upload requested documents. Be prepared to upload requested documentation to the lender’s online portal, including a copy of your driver’s license or other identification, pay stubs and more.
- Sign your loan documents. If your loan is approved and you agree to the terms, you’ll sign the documents for your online loan via a secure portal.
- Watch for funds in your bank account. Your loan funds will typically be transferred to your bank account within a few days of loan approval.
Pros and Cons of Online Personal Loans
Online personal loans come with many of the same pros and cons of traditional loans, with a few caveats. Here are a few of the advantages and disadvantages to consider with online personal loans in particular.
Pros
- Easy comparison shopping. Comparing online loan lenders and their loan options is easier since you can spend a few hours browsing available loans across dozens of providers. This is less time consuming than walking into individual banks and credit unions to compare loans.
- Check your rate before you apply. Many lenders let you get prequalified before you apply and without any impact to your credit. This step offers yet another way to compare several loan offers before you apply.
- Enjoy competitive rates and loan terms. Online loans come with incredibly competitive interest rates and loan terms. In many cases, online loan rates can be lower than what you’ll find in brick-and-mortar financial institutions.
Cons
- No option for in-person help. Applying for a loan online may not be ideal if you want to speak with someone in person about your borrowing options or if you want a personal relationship with a banker.
- Added stress for those who aren’t tech savvy. Individuals who aren’t accustomed to using technology may not love the idea of applying for funding online, and they may even find the process challenging.
- Your local bank may be better. It’s always possible your local bank or credit union could offer better rates and terms for your loan, especially if you have an existing banking relationship.
Online vs. Traditional Loans
Online loans and traditional loans are virtually the same product. In fact, many traditional banks and lenders let you apply for their loans in person or online. However, many online loans are offered through online money lenders that do not have any physical locations to visit even if you wanted to.
Still, there are a few areas where online loans tend to stand out. For example, many online loan lenders let you get prequalified for a loan without a credit inquiry, which is much less likely to happen with a traditional bank or credit union. Online lenders also tend to offer faster loan approvals and speedier funding in general, although this varies by lender.
| Online Loans | Traditional Loans | |
| Where you apply | Online or via a mobile app | Inside a traditional bank or credit union in most cases |
| Ability to “check your rate” | Yes, with many lenders | Unlikely |
| Funding timeline | As soon as the next business day | Varies, but typically takes longer |
| Chance at excellent rates and terms | Competitive rates and terms | You may qualify for better rates and terms if you have an existing banking relationship |
| Personalized service and attention | No | Yes |
Frequently Asked Questions
How Do I Borrow Money Quickly?
Many online lenders make it possible to get funding as soon as the next business day after getting approved. Other ways to borrow fast include credit cards you have access to and loans from family and friends.
How Much Are Online Loans For?
Available loan amounts for the best online loans vary by loan company. You may be able to borrow up to $35,000 with some providers, whereas lenders like LightStream and SoFi let eligible borrowers get up to $100,000 in funding with a personal loan.
Can you pay off a personal loan early?
You can pay off your personal loan early, as long as your loan contract doesn’t state otherwise. It’s important to note, however, that some lenders charge a prepayment penalty to make up for the interest payments they’ll lose out on. Additionally, paying off your loan early might have minor effects on your credit score for a short period of time.
Do personal loan companies check your bank account?
Some personal loan lenders may check your bank account, but many don’t. Depending on your lender’s requirements, you might need to provide a series of documents, such as bank statements, W-2s, 1099s, and tax returns, to prove you have the money to repay the loan.
Newsweek writer Jerry Brown contributed to this post.
Article Sources
At Newsweek Vault, our team of dedicated writers and editors are not just experts in their respective fields but also committed to delivering content that meets the highest standards of journalistic integrity. We analyze primary sources, including peer-reviewed studies, authoritative government sites and insights from leading industry professionals and ensure that every piece of information is researched, fact-checked and presented with accuracy and relevance.
- Consumer Credit – G.19. Board of Governors of the Federal Reserve System. Accessed on April 1, 2024.
- The Role of Fintech in Unsecured Consumer Lending to Low- and Moderate-Income Individuals. Federal Reserve Bank of New York. Accessed on April 1, 2024.
- Credit Balances on the Rise as Consumers Manage Higher Costs. TransUnion. Accessed on April 1, 2024.
- Gen Z Coming of Age in Credit Markets. TransUnion. Accessed on April 1, 2024.
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
